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Plaid politicians criticise final settlement for Ceredigion

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Elin Jones MS and Ben Lake MP call for further support

PLAID CYMRU politicians have slammed the latest budget settlement for Ceredigion, arguing that the Welsh Government’s funding formula unfairly penalises rural communities.

The county has received a funding increase of 3.6% for 2025/26, ranking 15th out of 22 local authorities in Wales. This represents the lowest increase per head of population in the country. By comparison, councils such as Newport and Cardiff received increases of 5.6% and 5.3% respectively.

The Welsh Government’s settlement has left Ceredigion County Council facing a budget shortfall of £7.4m to £7.5m, forcing it to consider cuts to services or significant council tax rises to balance the books. The council is currently modelling a potential 9.7% to 9.9% council tax increase to address the funding gap.

Ceredigion County Council HQ

Elin Jones MS said: “This is a minuscule uplift for Ceredigion Council and will give the council very little flexibility to ease its budgetary pressures. By having a lower than average uplift from Welsh Government, the effect of this will be felt by important local services and the council taxpayers in Ceredigion. If the funding floor had matched the average increase of 4.3%, as had been hoped, then the pressure on services and taxpayers in Ceredigion would have been much eased.”

Ben Lake MP added: “It is disappointing once again that rural councils are being disproportionately underfunded by the Labour Welsh Government. There seems to be an inherent bias in the funding formula against rural areas and this needs to be investigated and rectified. Council taxpayers in rural areas are having to pay more than their fair share and this is increasingly unsustainable.”

Funding concerns and service pressures

The council’s budget report warns of continued financial difficulties, with cost pressures expected to reach £11.8m in the next financial year. These include a £4m burden due to National Insurance increases, £2.4m to cover pay rises for social care workers under the Real Living Wage policy, and an additional £2m for out-of-county children’s placements.

While a 10.5% increase in capital funding from the Welsh Government will provide an additional £612,000 for infrastructure projects, the council states that overall funding remains lower in real terms than it was 15 years ago.

Ceredigion has also suffered a significant cut in its allocation from the UK Shared Prosperity Fund, which has been slashed by 43% from £8.8m to £5m. The council warns this will impact local economic development projects.

Calls for a fairer funding model

Both local Plaid Cymru politicians and Ceredigion County Council leaders are urging the Welsh Government to implement a funding floor of at least 4.3% in the final budget settlement. The council argues that the current system disadvantages rural areas like Ceredigion, where service delivery costs are higher due to a sparse population and greater travel distances.

The council’s financial resilience report warns that without changes to the funding formula, future budgets will remain unsustainable, with increasing pressure on council taxpayers to make up for shortfalls.

Elin Jones MS and Ben Lake MP have vowed to continue lobbying for a fairer deal for Ceredigion, highlighting the disproportionate burden placed on rural communities compared to urban areas.

Health

Government orders clinical review amid sharp rise in mental health diagnoses

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4.4 million working-age people now claiming sickness or incapacity benefit, up by 1.2 million since 2019, many because of a mental health condition

A CLINICAL review into how mental health conditions are diagnosed across the UK is expected to begin this week, following concerns within government over rapidly rising sickness-benefit claims linked to conditions such as autism, ADHD and anxiety.

Health Secretary Wes Streeting has commissioned leading clinical experts to examine whether ordinary emotional distress is being “over-pathologised” and to assess why the number of people receiving sickness and incapacity benefits has grown to 4.4 million – an increase of 1.2 million since 2019.

According to reports in The Times, ministers are particularly alarmed by the surge in the number of 16- to 34-year-olds now out of work because of long-term mental health conditions.

Streeting said he recognised “from personal experience how devastating it can be for people who face poor mental health, have ADHD or autism and can’t get a diagnosis or the right support,” but added that he had also heard from clinicians who say diagnoses are “sharply rising”.

“We must look at this through a strictly clinical lens to get an evidence-based understanding of what we know, what we don’t know, and what these patterns tell us about our mental health system, autism and ADHD services,” he told the newspaper. “That’s the only way we can ensure everyone gets timely access to accurate diagnosis and effective support.”

The review is expected to be chaired by Prof Peter Fonagy, a clinical psychologist at University College London specialising in child mental health, with Sir Simon Wessely, former president of the Royal College of Psychiatrists, acting as vice-chair.

Prof Fonagy said the panel would “examine the evidence with care – from research, from people with lived experience and from clinicians working at the frontline of mental health, autism and ADHD services – to understand, in a grounded way, what is driving rising demand.”

The move comes as the UK Government faces mounting pressure over the rising welfare bill. Ministers earlier this year pulled back from proposed changes to disability benefits, including those affecting people with mental health conditions, after opposition from Labour backbenchers.

Speaking on Monday, the Prime Minister said a fresh round of welfare reform was needed.

Keir Starmer said: “We’ve got to transform it; we also have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work.”

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Business

Welsh Govt shifts stance on business rates after pressure from S4C and Herald

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Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media

THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.

In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.

A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.

The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.

Herald reporting credited by senior councillor

Cllr Huw Murphy

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.

In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.

He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”

He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.

Media spotlight increased pressure on Cardiff Bay

On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.

Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.

A cautious welcome for ‘better than nothing’

Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.

“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”

Draft Budget expected soon

The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.

Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.

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Crime

Pembroke rape investigation dropped – one suspect now facing deportation

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DYFED-POWYS POLICE have closed an investigation into an alleged rape and false imprisonment in Pembroke after deciding to take no further action. One of the two men originally arrested is now in immigration detention and faces deportation.

The incident took place on Main Street over the weekend of 8–9 November 2025. Police were called at 9:45am on Sunday 9 November after reports of a woman in distress. She was taken to hospital for treatment.

Two men – aged 36 and 27 – were arrested at the scene on suspicion of rape and false imprisonment. They were subsequently released on bail while enquiries continued.

On Tuesday (2 December 2025), the force announced the criminal investigation has concluded and no charges will be brought. A police spokesperson said the decision took full account of the victim’s wishes.

Outcome for the two suspects:

  • The 36-year-old man has been transferred to the custody of the Home Office Immigration Enforcement team and is now detained pending deportation.
  • The 27-year-old man has been released with no further police action.

A Dyfed-Powys Police statement read: “This investigation was not terrorism-related, and we have no knowledge of any linked incident in Monkton. All rumours suggesting otherwise are incorrect.”

The force has also dismissed separate community speculation that the men entered the UK illegally on fraudulent passports or were due in court this week on terrorism charges.

Detectives stressed that every report of rape or serious sexual assault is treated seriously and victims are supported throughout. Anyone affected has been directed to specialist services, details of which are available on the force website.

No further police updates are expected.

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